There is a mutually agreed and documented system for dealing with complaints and grievances, which is Implemented and accepted by all affected parties

PT. MUTUAGUNG LESTARI

OER 20.83 KER 5.28

6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is Implemented and accepted by all affected parties

6.3.1

The company has the SOP Handling Complaints and Dis-satisfaction no. SOP/SMART/SIGS-CSRD/SADV/I/003 that explain the process of delivering and handling complaints and grievances internally and externally. In the SOP also mentioned that the company guarantees the anonymity of the reporting and the revealer of the case (whistleblower). Head of Administration is responsible for hearing and record all complaints and grievances that exist both orally and in writing from the external. Responses to the complaint and dissatisfaction is given as soon as possible and not later than one month after the issue received. Based on interviews with management, if there is no solution in the complaint mechanism, can be brought to the RSPO Complaint System.

6.3.2

The whole recording and handling of related complaints recorded in the Monitoring Form Handling Complaints and

PT. MUTUAGUNG LESTARI

RSPO ASSESSMENT REPORT

dissatisfaction document number: F/SMART/SIGSCSRD/SADV/003/001. According to interviews with workers and communities there are no complaints or dis-satisfaction.

Status: Comply 6.4

Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

6.4.1

The procedure of Ganti Rugi Tanah/Lahan (SOP/NP/SMART/VII/D&L002, dated 1 July 2010) described the mechanism for identifying legal, customary or user rights and also for identifying people entitled to compensation and determining calculation method to provide fair compensation. Evidence of Procedure Awareness was documented. It was communicated to related parties such as community leaders, and religious figures and youth leaders. While, within the FPIC Procedure No. SOP/SMART/SENS-CSRD/SADV/I/003, part 2.4 describes that identification of participatory map related to legal ownership of communities are considering gender, community leader, local or transmigrant communities, ethnic groups or communal land ownership, etc.

6.4.2

PT Sinar Kencana Inti Perkasa already has a SOP of FPIC Implementation (SOP / SMART / SENS-CSRD / SADV / I / 003), dated 1 July 2014. The purpose of the procedure is as a reference for staff and management in respecting customary rights and locally by realizing the principles of FPIC in the construction of new estates and mill. The scope includes;

activities related to the preparation / pre-conditions, the process of interaction and decision making, implementation, monitoring and reporting, disputes that occur and complaints that occur in areas that have been built estate and mill and or have been compensated will be resolved using SOP Handling Complaints and Uncertainty.

6.4.3

All the documents of land compensation is kept by legal department and if there is any inquiry from affected parties or relevant parties, the document can be accessed through officer/management permission.

Status: Comply

6.5

Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

6.5.1 & 6.5.2

The company has a 2018-2020 Collective Labour Agreement document between PT Sinar Kencana Inti Perkasa and the PT Sinar Kencana Inti Perkasa Labor Union (SPSI) which was witnessed and signed by the Office of Manpower &

Transmigration of Kotabaru Regency and Tanah Laut Regency on September 24, 2018. The company has submitted Collective Labour Agreement to the Manpower and Transmigration Office of Kotabaru Regency on October 11, 2018 in accordance with Letter No. 091 / HR / PSM-Kalseltim / 10/2018 concerning Submission of Collective Labour Agreement Registration, but until now the agency has not provided proof of such registration. (OFI).

To ensure the understanding of all workers related to the CLA, the company has conducted a socialization of its understanding in each unit including:

 Collective Labor Agreement socialization at the Sungai Kupang Mill on December 18-20, 2018 and giving the book of Collective Labour Agreement to worker.

 Collective Labor Agreement socialization at the Sungai Kupang Estate on October 15, 2018 and giving the book of Collective Labour Agreement to worker.

PT Sinar Kencana Inti Perkasa has supporting documents to ensure the standard payroll system in the company runs well and complies with applicable laws and regulations. The wage documents include:

 Kalimantan Selatan Governor Decree No. 188.44/0598/KUM/2018 on November 19, 2018 concerning Regency / City Minimum Wages and Regency / City Sectoral Minimum Wages in Kalimantan Selatan Province in 2019. The determination of agricultural sectoral minimum wages in Kotabaru Regency in 2019 was Rp. 2.796.819,62 and took effect on January 1, 2019.

 Decree of the Director of PT Sinar Kencana Inti Perkasa No. 007/CEOKalsetim/02/2019 dated March 01, 2019 concerning Structure and Wage Scale of Permanent Workers in 2019 which came into force on January 1, 2019.

PT. MUTUAGUNG LESTARI

RSPO ASSESSMENT REPORT

From the structure of the wage scale it is known that the lowest minimum wage is Rp. 2,826,820 for workers who work <1 year and the highest wage is Rp. 3,142,820, - for worker grade A8.

Based on the results of the review of worker wage documents and contractor worker payroll, it is known that the company and contractors has implemented provisions relating to the minimum wage for all existing workers. This is in line with results of interviews with harvester, sprayers, contractor worker and factory operators who stated that the wages given were in accordance with the minimum wage stipulations of the government.

At present the company has 857 workers in plantations and factories, while contractor workers for maintenance and transportation of FFB are 110 workers.

Based on the interview with labour union, gender committee, the CLA has been socialized by company to worker every year and labour union has been re-socialized. Collective Labour Agreement is currently sufficient as the basis of employment in the company, workers' rights, obligations listed are quite clear and has been knowing by every workers.

There has been change in workers policy such as minimum wage from 2018 to 2019, wage structure & scale in 2019, and the others. The workers policy change always been socialized to workers in the muster morning days after the change has been ratified.

The deduction/penalty it written in the company memorandum and has been socialized by company to workers. Based on the interview with harvesting workers, labour union and the others workers it has been know about deduction in the company memorandum and it has been socialized to workers.

Non-Conformity No. 2019.03 with Major category Evidence Observed

 Based on interviews with the Sungai Kupang Mill Labour Union, it was found that for maintenance mill workers the holiday was determined not Sunday because the day was used for work and the holiday was diverted on another day without an agreement with the workers.

 The company has a policy related to the implementation of the day off system for some jobs that do not get a day off not on Sundays but other days listed in Circular No. 161 / HROP / 06/2014 dated 13 June 2013 concerning Guidelines for a Day Off to coincide with the Official Holidays.

 In the Collective Labor Agreement (PKB) period 2018-2020 in Article IV concerning Provisions Regarding Work / Rest Time, Point 2 which states that "Generally a weekly rest day is Sunday unless it is expected another day by the Employer on the basis of the negotiations set forth in a written agreement. "

Non-Conformance Description

The company has not been able to show a written agreement related to the determination of holidays other than Sundays in accordance with the Collective Labor Agreement 2018-2020.

6.5.3

PT Sinar Kencana Inti Perkasa has welfare facilities for all workers available in each unit of the estate and factory, facilities provided by the company are G1 houses, G2 houses, polyclinics, mosques, prayer rooms, churches, kindergartens, elementary schools, school buses, water reservoirs, fields soccer, volleyball court, badminton court, food stalls, fuel kiosks, employee cooperatives, and other facilities.

Based on the results of field visits at the Sungai Kupang Estate worker housing, and Sungai Kupang Mill housing it is known that all facilities (houses and neighborhoods) are in good condition and maintained, each house is inhabited by 1 family and none is inhabited by more than 1 family.

The company also provides electricity from the Sungai Kupang Mill for the needs of employees with specified service hours, including:

 Morning: 04.00 - 06. 00. (normal day for 7 hours)

 Evening: 17:00 - 22:00

 Holidays: 08:00 - 11:00 (Sunday hours / day).

PT. MUTUAGUNG LESTARI

RSPO ASSESSMENT REPORT

In addition to the availability of electricity, the company provides self-help water services for the needs of employees with specified service hours including:

 Morning: 04.00 - 05.00.

 Evening: 17:00 - 18:00.

Based on interviews with housing residents, it is known that the company has provided welfare facilities for free and can be accessed by workers and their families. The provision of electricity and water has been deemed sufficient and adequate. The company also provides stalls for businesses selling basic food necessities to workers so that access to daily needs can be easily obtained.

Based on the results of field visits it is known that the company has provided adequate welfare facilities for workers such as housing, availability of clean water, availability of electricity, the availability of health facilities in the form of clinics in each unit and guarded by doctors and paramedics (nurses and midwives), worship facilities for workers . In addition, the company also provides educational facilities in the form of kindergarten within the company environment and the provision of school buses for the transportation of children of workers. All of these facilities can be easily accessed by all workers and their families.

6.5.4

The company has made it easier for workers and their families to obtain food sources by providing employee cooperatives that sell the daily needs of workers and provide access to vegetable traders to sell in the area of workers' housing. In addition, there are also workers who open small business stalls to sell daily necessities in each housing.

Based on interviews with workers, unions and gender committees, it is known that workers have no difficulty in getting food sources because the company has provided cooperatives that sell daily necessities and there are vegetable vendors who are given access to sell at home. In addition, workers can buy these needs into markets around the area of the company with access that is not too difficult.

6.5.2 Status: NCR No. 2019.03 with Major category

6.6

The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

6.6.1 & 6.6.2

PT Sinar Kencana Inti Perkasa already has a Circular from the Vice President of Agronomy No. 020 / HR PSM6 / 01/11 dated January 3, 2011 concerning Freedom of Association. In the letter stated that the company provides freedom for employees to associate and gather written in Indonesian. In addition, the company has a Collective Labor Agreement for the period of 2019-2021 article 3 on the Recognition of the Right to Organize & Organize stating that the company recognizes and gives freedom of rights to workers to form and establish labor unions.

The legal basis for the formation of trade unions is the evidence of their registration in labor related agencies in accordance with applicable regulations, including:

 Registration of Union No. 568/133 / SP / HI-DKT / 2019 dated May 28, 2019 concerning Changes in Management of the Kupang Mill Independent Workers Union which was approved by the Head of the Manpower and Transmigration Office of Kotabaru Regency.

 Decree No. KEP-06/ORG/DPC.F-SP/KTB/IV/2019 dated April 1, 2019 issued by the SPP-SPSI Federation Branch Management Board Kotabaru Regency, South Kalimantan Province. The registration for the Office of Manpower and Transmigration of Kotabaru Regency was carried out by the union at the time the ratification of the management of the 2019-2024 period was ratified, but the union has so far not yet received the evidence of the registration. (OFI) Based on interviews with labor union representatives, it was found that the company gave workers full freedom to carry out the formation and election of labor union management. The company also ensured that the election had no interference in its implementation and for the current management were workers with the status of foreman below that in order to avoid conflicts of interest.

PT. MUTUAGUNG LESTARI

RSPO ASSESSMENT REPORT

Status: Comply

6.7

Children are not employed or exploited.

6.7.1

PT Sinar Kencana Inti Perkasa already has a GAR Social and Environmental Policy (GSEP) to implement policies related to hiring in accordance with applicable regulations and has been signed by the Head of Upstream, CEO-Downstream &

Commercial, Executive Director & CFO; The Managing Director of Sustainability & Strategic Stakeholder Engagement, in point 3 of the Work Environment and Industrial Relations states that companies forbid employing children and take actions to prevent the use of child labor in our activities. Take corrective action if child labor is found and ensure appropriate follow- up and provide safety protection assistance. In addition, the company has made Circular from HR Director No. 002 / SE- HRDV / 03/09 dated 31 March 2009 concerning the Minimum Age Limit which states that companies set a minimum age limit of 18 years based on Law No. 13 of 2003.

Based on the verification of the Workers Register document at Sungai Kupang Mill and Sungai Kupang Estate there were no workers who were under 18 years of age at initial admission. The results of interviews during field visits and interviews with harvest workers, sprayers, and factory operators revealed that there were no workers under the age of 18 and during the past year there were no incidents of sexual harassment in the company's work environment.

Status: Comply

6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.

6.8.1; 6.8.2 & 6.8.3

PT Sinar Kencana Inti Perkasa already has a GAR Social and Environmental Policy (GSEP) to implement policies related to hiring in accordance with applicable regulations and was signed by the Head of Upstream, CEO-Downstream &

Commercial, Executive Director & CFO; The Managing Director of Sustainability & Strategic Stakeholder Engagement, in point 3 Work Environment and Industrial Relations states that the company provides equal opportunities for all workers, and embraces diversity regardless of ethnicity, religion, disability, gender, political affiliation, sexual orientation, or membership labor union. The company ensures that workers are protected from acts of discrimination in all stages of employment relations.

To ensure the implementation of the auditor's review of the employee registration document, it is known that the workers recruited have diverse educational, ethnic and religious backgrounds. Also based on field observations it is known that workers come from a variety of ethnicities, religions, races, and genders.

Based on interviews with workers, trade unions and gender committees, it is known that the recruitment of workers is based on the needs of the company regardless of ethnicity, religion, races and class background. All prospective employees are entitled to the opportunity to work according to their scientific background and company needs. In addition, during 2018-2019 there were no issues regarding discrimination against workers.

Recruitment of workers in 2019 is carried out based on skills, capabilities, qualities and health conditions, this is evidenced by the existence of performance assessment documents, interviews, and results of health checks for each prospective employee applying for a job.

Status: Comply

6.9

There is no harassment or abuse in the work place, and reproductive rights are protected.

6.9.1 & 6.9.2

PT. MUTUAGUNG LESTARI

RSPO ASSESSMENT REPORT limit of 18 years based on Law No. 13 of 2003.

For policies to maintain decency in the work environment, the company has Circular No. 118 / HR.PSM06 / 08/2011 dated August 1, 2011 regarding the Prohibition of Sexual Harassment Policy which states that the company will provide sanctions to workers who carry out such treatment with disciplinary punishment until termination of employment (FLE).

The company has a work program for gender committees in 2019 with activities such as posyandu activities, religious studies, regular meetings of the management every semester, conducting gender socialization, hygiene socialization and environmental management. Based on the results of interviews with women workers in spray and fertilizer activities it is known that the workers already know the management of the gender committee and have received socialization related to women's rights (gender). In addition, during the past year there had never been any sexual harassment / violence that occurred in the operational area.

Based on the results of interviews with the management of the gender committee it is known that policies related to gender and women's rights set by the company become a reference for the managers to carry out activities and socialization to workers. During the past year there have never been any incidents or issues related to sexual harassment, domestic violence, child labor or human rights violations.

Status: Comply

6.10

Growers and mills deal fairly and transparently with smallholders and other local businesses.

6.10.1

Mill received FFB from engage-smallholder such as Sungai Kupang Plasma (SKPA) and Sungai Panci Plasma (SPNA) and other own estate under management of PT Sinar Kencana Inti Perkasa and another independent supplier. FFB pricing of engage-smallholder from SKPA and SPNA following the actual prices that released by Plantation Agency of Kalimantan Selatan while independent supplier following FFB Purchasing procedure. The price is determined unilaterally by the company where the supplier accept or not.

6.10.2

6.10.3 and 6.10.4

Based on document verification and interview with head clerk and local contractor, known that PT Surya Kencana inti Perkasa has had an agreement with them to outsourcing operational activity such as FFB transporter and replanting. During the audit, auditor has interviewed local contractor representatives’ i.e PT Satrindo Jaya and CV Selamat Mandiri. Through the interview obtain information that the company has had a work agreement for FFB transporter and replanting for this year. Those agreement based on a fair and transparent process. It payment also on time and no complaint until now.

Status: Comply 6.11

Growers and millers contribute to local sustainable development wherever appropriate.

6.11.1

Determination of local development programs based on proposal from surrounding Village. Certification holder has implemented some of CSR program for 2019 and contribute to local development, for example:

 Religion aspect. Consumption for tadarus activity in surrounding mosque.

 Education aspect. Note book assistance for madrasah.

 Infrastructure aspect. Fund assistance for digging trenches in Empang Benao Village

 Social aspect. Cooking oil bazar, health education.

 Partnership with local local contractor for operational activity, such as FFB transport, infrastructure, FFB purchase, Etc.

Dalam dokumen Roundtable on Sustainable Palm Oil Certification R S P O (Halaman 49-56)